Pagaya Technologies Ltd. (PGY) is a Market Outperform on Strong Unit Economics and Operating Leverage: Citizens

Pagaya Technologies Ltd (NASDAQ:PGY) is one of the best cheap stocks that will skyrocket. On January 6, analysts at Citizens reiterated a Market Outperform rating on Pagaya Technologies Ltd (NASDAQ:PGY) with a $35 price target.

According to the research firm, Pagaya Technologies boasts a competitive edge in the marketplace lending sector due to strong unit economics and operating leverage. Consequently, the company boasts robust EBITDA margins and a healthy gross profit margin of 42.43%.

Citizens expects the company to continue benefiting from its B2B2C model, which integrates directly into lenders’ platforms for underwriting and turn-downs. The model has enabled step-function growth through new lender additions. In addition, the company has sought to strengthen its growth metrics by diversifying beyond its core personal loan business into auto point-of-sale and other new product verticals.

Meanwhile, late last year, Pagaya Technologies inked a strategic partnership with digital personal finance company Achieve to broaden consumer access to personal loans. The goal is to integrate the company’s AI-powered underwriting technology and data network into its platform.

Sanjiv Das, Co-Founder and President of Pagaya, stated: “By embedding Pagaya’s AI-powered network with Achieve’s existing platform, we can help them responsibly increase access to personal loans, while supporting their long-term vision.”

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology (fintech) company that uses AI, machine learning, and a vast data network to provide credit and real estate solutions to partners, helping them extend financial services, including personal, auto, and home loans.

While we acknowledge the potential of PGY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.